The Broken Window Fallacy

Think you know the problem with the debt & deficit?

The Secret to Wealth is…

The Wealth Curve

(Don’t worry. We’re going to tell you the entire secret on this one page.)

The Simple Key to Grow Wealth for your Entire Life!

(And your childrens’ lives, your grandchildrens’ lives, etc. in perpetuity.)

Most people want to be wealthy.

They want to have a big “Pile of Money”

But, in fact, the only plans they have are for spending money.
They are planning on surviving, not thriving.
Most Americans make multiple millions of dollars in their lifetimes. They just don’t keep it!

There are 3 kinds of people in the world

(when it comes to money):

1. Borrowers—they don’t have enough money so they borrow to live their lifestyle.


2. Cash Buyers—they save money and pay cash for everything (I used to be one of those!).


3. Wealth Builders—they do things right because they know how money really works.

What’s Wrong with Borrowing?

We all know that borrowers can get into trouble. They can end up owing more interest every month.
We call this “The Negative Wealth Curve”. It looks like this (and it’s very scary):

The bankers want to have you pay interest forever. But there is another way.
When you don’t have any money, you have to borrow money. But to borrow money you must pay interest!
This is the PAY UP scenario! (Because you must “PAY UP” interest to the Banker.)

What About the “Cash Buyer”?

The Cash Buyer understands money, doesn’t borrow, and thinks “Cash is King!”
Is he doing things right? NOPE!
This is the GIVE UP scenario! Because every time you pay cash, you are “GIVING UP” all of the interest that your pile of money could have earned, forever (into your future, your childrens’ futures, your grandchildrens’ futures, etc.)

The Wealth Curve

So what about “The Wealth Curve”? What does it look like and how does it work?
The Wealth Curve is the simple result of a powerful force known as “Compound Interest”.
(Rumor has it that, when asked about the most powerful force in the universe, Einstein reportedly said, “Compound Interest”!)

Borrowers are NOT on The Wealth Curve, but neither are Cash Buyers!
The Cash Buyer falls off The Wealth Curve each time he or she spends their cash to make a purchase.

Falling Off The Wealth Curve

What does it mean to “Fall Off The Wealth Curve”?
It means that you’ve lost all the compound interest growth potential in that cash that you spent.
Remember “PAY UP or GIVE UP!”?
That money could have earned you and your children and your grandchildren wealth in perpetuity.
Believe it or not, “Cash is NOT King”. There is a better way.

The Cost of Falling Off The Wealth Curve

In this example, which portion of growth on The Wealth Curve was lost? The first five years or the last five years?
Answer: It was the last five years!
When this person died at Age 92, she didn’t have time to make up all the lost growth that she suffered when she fell off The Wealth Curve at Age 27!
And she fell off just one time!
Most of us are Falling Off The Wealth Curve several times per day!
Can you see the terrible effect of Falling Off The Wealth Curve?

Riding The Wealth Curve

In order to get onboard The Wealth Curve, you simply need to do three things:

1. Keep your money in a place where it can grow forever, tax-free.
• A properly set-up Dividend-paying Mutual Whole Life Insurance Policy is best.


2. Borrow any money you need to live your life (using loans against the money in your policy).
• Borrow against the “Cash Value” of your Policy any time, no questions asked.


3. Pay yourself back (with interest) from your future earned income.
• You were going to pay interest to a Banker, anyway.
• So why wouldn’t you pay yourself?

Now That You Know the Secret

You can ride The Wealth Curve, too.

We would be happy to advise you at no cost or obligation.
Call Tony John  or Tim Yurek @ Tier 1 Capital 570-208-9385

A Time for Choosing

Don't Buy Stuff.....

http://vimeo.com/3993848

Erin Botsford

WHITEBOARD: Fiscal policy vs. Monetary policy

The importance of Banking.....

A conversation with R. Nelson Nash



Will said . . ..

"Never squat with your spurs on"

Will Rogers, who died in a 1935 plane crash, was one of the
greatest political sages this country has ever known.









Enjoy the following:

1. Never slap a man who's chewing tobacco.

2. Never kick a cow chip on a hot day.

3. There are two theories to arguing with a woman.
Neither works.

4. Never miss a good chance to shut up.

5. Always drink upstream from the herd.

6. If you find yourself in a hole, stop digging.

7. The quickest way to double your money is to fold it
and put it back into your pocket.

8. There are three kinds of men:
The ones that learn by reading.
The few who learn by observation.
The rest of them have to pee on the electric fence
and find out for themselves.

9. Good judgment comes from experience, and a lot of that comes from bad judgment.

10. If you're ridin' ahead of the herd, take a look back every now and then
to make sure it's still there.

11. Lettin' the cat outta the bag is a whole lot easier'n puttin' it back.

12. After eating an entire bull, a mountain lion felt so good he started roaring.
He kept it up until a hunter came along and shot him.
The moral: When you're full of bull, keep your mouth shut.

ABOUT GROWING OLDER...

First ~Eventually you will reach a point when you stop lying
about your age and start bragging about it.

Second ~ The older we get, the fewer things seem worth waiting in line for.

Third ~ Some people try to turn back their odometers.
Not me; I want people to know 'why' I look this way.
I've traveled a long way, and some of the roads weren't paved.

Fourth ~ When you are dissatisfied and would like to go back to youth,
think of Algebra.

Fifth ~ You know you are getting old when everything either dries up or leaks.

Sixth ~ I don't know how I got over the hill without getting to the top.

Seventh ~ One of the many things no one tells you about aging
is that it's such a nice change from being young.

Eighth ~ One must wait until evening to see how splendid the day has been.

Ninth ~ Being young is beautiful, but being old is comfortable.

Tenth ~ Long ago, when men cursed and beat the ground with sticks,
it was called witchcraft.
Today it's called golf.

And, finally ~
If you don't learn to laugh at trouble,
you won't have anything to laugh at when you're old.
Amen ~

CBS 401K Fallout

Suze Orman and Dave Ramsey Discuss "Bank on Yourself"

Douglas Andrew - Cornelius Vanderbilt vs Amschel Rothschild

Current European Tax Rates
 United Kingdom    Income Tax:   50%   VAT:   17.5%   TOTAL:   67.5%

France                Income Tax:   40%    VAT:   19.6%   TOTAL:   59.6%

Greece               Income Tax:   40%     VAT:   25%      TOTAL:   65%

Spain                 Income Tax:   45%     VAT:  16%      TOTAL:   61%

Portugal             Income Tax:   42%     VAT:   20%      TOTAL:   62%

Sweden              Income Tax:   55%     VAT:   25%      TOTAL:   80%

Norway              Income Tax:   54.3%  VAT:   25%      TOTAL:   79.3%

Netherlands        Income Tax:    52%    VAT:   19%      TOTAL:   71%

Denmark            Income Tax:   58%     VAT:   25%      TOTAL:   83%
Finland              Income Tax:   53%     VAT:   22%      TOTAL:   75% 

If you've started to wonder what the real costs of socialism are going to be once the full program in these United States hits your wallet, take a look at the table. As you digest these mind-boggling figures, keep in mind that in spite of these astronomical tax rates, these countries are still not financing their social welfare programs exclusively from tax revenues! They are deeply mired in public debt of gargantuan proportions. Greece has reached the point where its debt is so huge it is in imminent danger of defaulting. That is the reason the European economic community has intervened to bail them out. If you're following the financial news, you know Spain and Portugal are right behind Greece.

The United States is now heading right down the same path. The VAT tax in the table is the national sales tax that Europeans pay. Stay tuned because that is exactly what you can expect to see the administration proposing after the fall elections. The initial percentage in the United States isn't going to be anywhere near the outrageous numbers you now see in Europe. Guess what. The current outrageous numbers in Europe didn't start out as outrageous either. They started out as minuscule, right around the 1% or 2% where they will start out in the United States. Magically, however, they ran up over the years to where they are now. Expect the same thing here.

It is the very notion that with hard work and perseverance, anybody can get ahead economically here in the USA. Do you think that can ever happen with tax rates between 60% and 80%? Think again. With the government taking that percentage of your money, your life will be exactly like life in Europe . . . You will never be able to buy a home. You will never buy a car. You will never send your children to college. Let's not shuffle the battle cry of the socialists under the rug either. It's always the same cry. Equalize income. Spread the wealth to the poor (whoever they are). Level the economic playing field.  Accomplish that and everything will be rosy.

It's time to take a really hard look at reality. Greece is a perfect example. Despite the  socialism system that has ruled this country for decades, with a  65% tax rate, they are drowning in public debt, would have  defaulted without hundreds of billions in bailout money from the  EU, and still . . .  20% of their population lives in  poverty. What has all that socialism money bought, besides ultimate power for the politicians running the show?  Do you think these people are "free?"  They're not. They are slaves to their economic "system."

The Power of Zero….as in Zero Taxes

 

If rate of return is important, what is the return on tax free?
Most advisors, financial gurus & TV talking heads have us convinced that rate of return is the most important factor for growing your investments and building your retirement account.

Their primary focus is on the products and “where you have your money." At Tier 1 Capital we disagree with this philosophy. By following Privatized Banking through the use of Nelson Nash’s Becoming Your Own Banker and eliminating the staggering costs of traditional financing you can dramatically increase your wealth building potential.

To illustrate this point let’s assume that we are the greatest financial planners in the world and we can get you a 100% return on your investment every single year for the next 20 years (See chart below). Comparing the growth in a tax free account and a taxable account is staggering. We’ve used tax rates of 0%, 17% and 27% respectively for 3 fictional clients. Many people are in higher tax brackets!

Now, I have performed equally well for each of these 3 clients. What’s the difference? Will getting a higher rate of return solve the problem? Absolutely not! The bigger issue is the tax paid on those gains. So, which one client would you prefer to be? Of course you'd want the tax free plan. Contact us to find out what the effective rate of return on your investments is!